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What is the practice of buying on margin?

APurchasing stocks without any prior knowledge of the company
BUsing bank loans to purchase stocks
CPooling money with a group of investors to buy stock
DBuying stocks when they are low and selling them when they are high
EPurchasing consumer goods using an installment plan

Verified Answer :

The practice of buying on margin entails "(B) Using bank loans to purchase stocks," since this is favorable for many people who lack the proper funds "up front" to purchase the stocks. 

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